19. When should a perfectly compet etitive industry, what will happen to the A) When its P>ATC B) When its P>MC C) When its P>AFC D) When its P>AVC 20. Demand and Supply are given by the following equations Demand: P = 100 - Q Supply: P = 10 + 2Q 100 - R What is the market equilibrium quantity and price? 10+2Q A) Q=30, P=70 B) Q=10, P=100 100-Q = 1012Q C) Q=90, P=10 D) Q=45, P= 55 - 160- 10 - 32 St t CSO: 20 CPR put only when the price of its b id Q = 22 8 run. Each firm has a marginal 50. If the price in the market is 21. Suppose the government levies a specific tax of $t per unit as depicted in the graph above. After the tax, Consumer Surplus is Producer Surplus is , and government revenue is A) Areas atb; area f; areas etc+d. BArea a; area e; areas b+c. C) Area a; area e; areas b+c+d D) Area a; areas etf; area b+c rve shifts inwards, what will 22. Again, referring to the graph above, the tax imposes a social deadweight loss of A) Areas etc+d B) Area f Cy Area d D) Areas d+g 5